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CHAPTER I

INTRODUCTION

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CHAPTER - 1

INTRODUCTION

Market Potential

Market analysis services from Mapping Analytics helps to know the economic
opportunity available to company in any geographic market. Whether products sell to
consumers, to businesses, or both, market sizing provides intelligence. The company
need to deploy sales and marketing resources effectively.

Benefits of Market Potential Analysis

• Understand market potential for a single store, network of stores or a new market.
• Deploy resources effectively by ranking Pepsi slim can in priority order.
• Forecast total opportunity in terms of number of customers and revenue potential.
• Estimate Pepsi slim can market share.

Market Potential Analysis:

A market potential analysis from Mapping Analytics may include:

• A customer profile to understand where to find more like them


• Market penetration and market share reports showing performance in existing
markets and expected performance in new markets
• Market ranking reports allowing company to prioritize resource deployment into
new markets

Strategies for Sizing Markets


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What is a geographic market worth to our business? Mapping Analytics will help us to
find the answer. Market potential can be expressed as a function of:

• The number of customers purchasing


• Amount purchased
• Frequency of purchase

In other words, Market potential = (how many * how much * how often)

Bottom Up or Top Down Market Analysis

It all depends on our specific needs. Analysis report can advise company on the best
approach to sizing any market. We employ various methodologies and data sets to get the
answers we need.

• A bottom up approach to market sizing starts with our customers. How much and
often do they buy? What is their profile? How many potential customers do we
have in the market based on our customer profiles? How can we reach them?
• A top down approach starts with market and industry data. It takes a close look at
a geographic market area and profiles the consumers and/or businesses to let we
know their propensity to buy our products and services.

Mapping Analytics has expertise in both these approaches to market sizing. We also have
a wealth of data sources through partnerships with the best data providers in the industry.
We can match the right data for market analysis to our business and market strategy.

Cluster Analysis for Market Sizing

We often use lifestyle clustering systems to size consumer markets. Clustering systems
operate under the premise that "birds of a feather flock together." That means people with
similar buying behaviors and demographic profiles tend to live close together. This helps
us to identify neighborhoods or markets where our potential is highest.
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• Cluster analysis identifies key segments in the population that are more likely to
purchase slim can products than the average consumer
• Knowing in which clusters people reside provides a reasonable means of
understanding and predicting how they will behave
• Understanding which clusters are more likely than others to purchase allows
better targeting
• Clusters are tied to geography, allowing we to identify and prioritize
neighborhoods, trade areas and markets

Access Market Opportunity

Market analysis services from Mapping Analytics will provide the key intelligence we
need to rank and prioritize markets. We will know:

• The top new geographic markets to target based on customer or revenue potential

• Which markets where we currently do business have untapped potential

Gaining this market understanding is essential to growing and expanding our business.
But it isn't enough on its own.

Steps taken to gain market share, where there is market potential

We need to act upon our new found market understanding by deploying sales and
marketing resources effectively.

This is where Mapping Analytics separates from other firms that might offer we analytic
services. We can help we choose higher-performing store or business locations, align our
sales force more productively, and acquire prospect lists. All so we can tap into the
market opportunity we've helped we identify.

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Market Potential Example

Let's say we sell Pepsi slim can and our ideal customer is 25 years of age or older and
owns a Bike of Rs 50,000 or higher. If we don't already know this about our customers,
our customer profiling services can help we discover it.

Mapping Analytics will then perform market potential analysis using market data,
demographics and/or lifestyle clustering systems to find areas where high concentrations
of our ideal customer live.

From there, it's ranking the potential markets and deploying resources by selecting
locations of branches or performing targeted direct marketing.

What's the market potential for our products and services?

Demographic Site Selection:

When we work with Mapping Analytics, we will discover that demographic site selection
leads to a sound business site selection decision. We include a series of important
analyses when helping we select new sites, including:

• Customer profiling
• Mapping customer locations
• Competitive analysis
• Trade area development and mapping
• Demographic, Census, and market data analysis
• Market potential analysis
• Analysis of site impact on overall store network

Mapping Network of Sites to Optimize Market Coverage

Just as no man is an island, no store or branch sits on its own. Other stores, competitors,
traffic patterns, population density and more affect the profitability of a store location.

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That's why it's critical to consider store network optimization when determining:

• A new store location


• How many stores or branches we can open in an existing market
• Where we should expand our network
• What stores should be closed or consolidated

How can we account for all these factors? It's easy when we work with Mapping
Analytics. We're experts at it and ready to help.

Locations that Deliver Customers

Customer analysis and demographic analysis are essential to choosing the best retail store
locations. We don’t want to make decisions without knowing the profile of our best
customers and the demographics of the area we are considering for store network
expansion.

Fortunately, Mapping Analytics is staffed with experts who can help we understand our
customers and any geographic area where we may want to open a store.

Where are there More Customers

Reality is, not all our customers are ideal.

• Some customers purchase infrequently, don't spend much money, or have no


loyalty, yet manage to consume a lot of our selling resources.
• Other customers are stars: frequent purchasers, fiercely loyal, open to cross-sell
and up-sell offers. These are the customers we want more of.

Mapping Analytics will help we find more of these customers with our site selection
services.

Create Customer Profiles

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We build customer profiles based on past purchase behavior, demographics, lifestyle
segmentation systems, and other market data to give us an accurate sense of who our best
customers are.

• Different age group of customers


• Customers income level
• Customers purchasing behavior
• Customers lifestyle

Once we know what our best customers look like, where do we find more of them?

Analyze Market Potential

We find more ideal customers in geographic areas where the demographic profile of the
neighborhood populations closely match the profile of our best customers.

A customer profile is a key input into understanding market potential. Market potential is
a numerical answer. Mapping Analytics calculates market potential for any area using
estimated market penetration and expected volume of sales. We use both the market
potential analysis, including trade area definition, to make site selection
recommendations.

For the mathematically inclined, think of it this way:

(Customer profile + market potential + trade area definition)


= outstanding site selection

Rank Potential Site Locations

There may be many potential locations for opening a new store or branch. How do pick
the right one, or the top three, or however many we need to open?

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Mapping Analytics will help to find the answers. Our modeling techniques result in a
store trade area profile and scores for each potential location. We’ll know how any
proposed location compares to an ideal store profile. The store location score takes into
account expected sales, market penetration, cannibalization, competitor influence, and
other factors.

Key Benefits to Ranking Store Locations

• Speed to market by knowing where to go first


• Better allocation of our resources in the retail market
• Faster return on investment by focusing on the most profitable retail locations first
• Forecast demand and sales more accurately

Sales Forecasting for Store Locations

The key metric in deciding where to open a new store location is its sales potential.
Mapping Analytics uses customer profiles, demographic data, and trade area analysis to
forecast demand and sales potential of proposed locations. So we'll always be confident
in the locations we choose.

• Where are our customers?


• Where are our best prospects?
• Where are our current stores and our competitors'

• How many suitable markets exist in a given geographic area for the
products/services we offer?
• How many locations are necessary to optimally cover a given market area?
• Which locations offer the greatest potential?

The answers to these questions provide actionable information that can help us build a
network of stores/branches to take full advantage of market opportunity. It's the kind of
information decision makers receive when working with Mapping Analytics.

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OBJECTIVES OF THE STUDY:
Primary objective:
A study on market potential of Pepsi slim cans with special reference to PepsiCo
India holdings Pvt Ltd at Chennai city.

Secondary objective:

 To find out the market potential for the network of store or a new
market.

 To deploy the resource effectively by ranking the Pepsi slim can


products in priority order.

 To find out the total opportunity in terms of number of customers


and the preference.

 To Estimate the market share of Pepsi slim can.

RESEARCH METHODOLOGY:

Exploratory research:
The Exploratory research design is appropriate for any problems in which a very
little knowledge is available. An Exploratory study is in the nature of a preliminary phase
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and is absolutely essential in order to obtain a proper definition of problem in hand. So it
is helpful in breaking broad and vague problems into smaller, more precise sub problem
statements, hopefully, in the form of specific hypothesis.

In this study the exploratory research has been used to frame structure
questionnaires, individuals with knowledge and ideas have been interviewed to get the
idea to frame structure questionnaire. A part from books and journals has been used to
gather information about the insurance and the insurance industry.

DATA COLLECTION:
In this study internal and external source for data collection had been used. In the
internal and external sources of data collection these two types of data comes into
pictures.
 Primary data and
 Secondary data.

Primary data:
All the primary data for the purpose of the study were obtained by interviewing
the consumers with the help of a questionnaire. Questionnaires were framed on the basis
of product & its competition. The questions were designed in such a way as to elicit
maximum information and data.

Secondary data:
Secondary data has been collected by through books & websites.

RESPONDENTS:
The respondents are customers and consumers of all age groups.

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GEOGRAPHICAL AREA OF STUDY:
The Geographical area that the Researcher chosen was Chennai.

UNIVERSE:
Total number people who consumes the Pepsi slim can products in the
Chennai city.

SAMPLE SIZE:
The sample size for this study was 100 customers and consumers, who are
retailers, college students and working people.

SAMPLING SCHEME:
The sampling technique adopted was “simple random sampling”. As the
universe is mass and cannot survey the whole and due to lack of time. Among the total
population researcher conveniently selected 50 customer & consumers has been derived
from the sample studied and the estimates are those based on a part and not whole. Hence
there is a risk of the sampling giving rise to certain errors as sampling errors and also the
opinion of the respondents may not be the opinion of the population.

SIMPLE RANDOM SAMPLING:


It refers to that sampling technique in which each and every unit of the population
has an equal opportunity of being selected in the sample. In simple random sampling
which items get selected in the sample is just a matter of chance –personal bias of the
investigator does not influence the selection.

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RESEARCH TOOL:
In this study the questionnaire was used as a research tool.

QUESTIONNAIRE:
The term questionnaire refers to a self-administered process whereby the
respondents himself/herself reads the questions and records his/her answers without
assistance of an interviewer.
The questionnaire has been framed by using the following five steps:
1. Specifying data requirements
2. Determining the type of questions to be asked.
3. Deciding the number and sequence of questions.
4. Preparing the preliminary draft of questionnaire.
5. Revising and pre-testing the questionnaire.

The questions used in this study falls under the following categories:

1. Open-ended questions
2. Close ended questions
3. Rating and ranking question
4. Multiple choice question

DATA ANALYSIS:
This study has collected data’s based on the questionnaire and separate tables
had been drawn for needed questions and charts had also drawn for the tables. The chi-
square test had been used to interpret the data are needed to drawn conclusion.

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Suggestions had been drawn with the use of the charts and tables. Separately each table
has its own inference provided at the end of each table

LIMITATIONS OF STUDY:

 The study is limited to particular area hence the study cannot be


generalized.
 Consumer behavior differs according to their taste of preference.
 Sample size is considered as a constraint factor that restricted the
collection of data.
 Customer responses are low for the questionnaire

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CHAPTER II
REVIEW OF LITERATURE
AND
COMPANY PROFILE

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REVIEW OF LITERATURE

Pepsi.com, a Very Successful Brand Site, Chose a Target Audience, Explored the
Audience’s Needs, Determined Their Own Business Goals, and Designed a
Smash Hit of a Site

The first question everyone asks: “Why would anyone go to Pepsi.com?” This is because
we mostly think of the Web as a distribution vehicle. We think of ordering books at
Amazon, or reading content at CNN, or downloading music from MTV. How do you
drink a soda on a computer screen?

So, who goes to Pepsi.com? Load up the fun, entertainment-packed Pepsi.com and it’s
obvious in a glance. The site is clearly designed to attract and entertain teens and young
adults, the current target demographic for Pepsi. The strategy works, Pepsi.com ranked
#4 by visits in the Food and Beverage Brand category, (Coca-cola.com ranked #14) by
Hitwise. But if you can’t sell anything on your site, why devote the human resources,
time and budget to create it? In other words, what’s the payback?

• The goal of the branding website is to use the opportunity to strengthen the brand
identity, to build upon the intangible emotional connection in the mind of the
loyal consumer.
• Pepsi.com is an excellent example of a branding website—the use of colors, logos
and complete look and feel integrate well into the overall brand image.
• They have fully integrated online and offline marketing, with offline promotions
driving traffic to the site, and online promotions gathering more information from
visitors for offline marketing efforts.
• The site has interactive functions that encourage repeat visits and viral marketing,
including downloads, online games and music mixing applications.

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• Pepsi chose a target audience (teens and young adult consumers), found out what
they want (entertainment, music and sports), determined their own business goals
(build the brand, traffic and awareness) and designed a smash hit of a site.

Pepsi, as a fast moving consumer goods (fmcg) site, will not experience large Web traffic
volume by default. Consumers know they can’t buy anything here. Since a soda isn’t a
very complex product, consumers won’t even think about additional information needs,
other than perhaps a slight, occasional interest in nutrition. So what should Pepsi put on
the consumer website? The Internet Advertising Bureau said of PepsiWorld.com: “The
site is not about soft drinks; it is about entertainment and youth culture. An entertainment
Web site is certainly more likely to attract users than one devoted to soft drinks.”

PepsiCo's Distribution and Logistics Operations

The case discusses in detail the distribution and logistics operations of the US-
based PepsiCo, one of the world's leading beverages and snack foods companies.
The case details the distribution system of the company clearly explaining the
significance of various distribution channels used including supermarkets/retail
stores, fountain/restaurant, convenience stores, vending machines and others for
distributing beverages and snack foods. The case also describes the logistics
operations of PepsiCo's bottler (Pepsi Americas) and elaborates on how by
employing the latest wireless technology solutions it enhanced the efficiency of
its distribution and logistics operations significantly.

Case Study Of There's A Syringe In My Pepsi Can!


Pepsi-Cola is a soft drink produced by PepsiCo. This soft drink was first
introduced on August 28, 1898 by pharmacist Caleb Bradham. This paper is a
case study of a hoax perpetrated on PepsiCo on June 9, 1993. It all began when an
82-year-old man, Earl (Tex) Triplett and his wife Mary Triplett said that they had
found a syringe similar to that used by diabetics in a can of Diet Pepsi. The can
was turned over to their lawyer, which could be the first signs of trouble in this

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case, then to the county health officials. The FDA then issued regional advisory
urging consumers to empty the content of their Diet Pepsi cans before drinking.
This is when the flood gates opened. This warning then prompted national media
attention within 24 hours.
How PepsiCo handled the crisis?
With the frightening images of syringes in Diet Pepsi cans and the upcoming July
4th holiday sales period PepsiCo needed to react immediately. The FDA had
recommended recall of Diet Pepsi but PepsiCo knew that with the manufacturing
process they had established that the syringe could not have gotten into the can
during the canning process and would use high-speed filming of this process to
prove to consumers that this was not the cause of the contamination by the
syringe. Pepsi relied on their well established crisis response guidelines. In
response to other crisis problems that has happened over the years, namely the
Tylenol scare, PepsiCo had evolved their crisis plan from a rudimentary product
recall plan into a more sophisticated communications network plan. They did this
by benchmarking Johnson & Johnson's crisis plan. This was needed to preserve
Pepsi's trademark and the company's $8 billion business. The job of the public
relations group was to help established communications to the different publics
involved including the consumers, the media, shareholders, employees, bottlers
and even regulatory.

Pepsi ‘can’s the youth


At the Effies 2008 presentation round, 30 case studies across seven
categories were presented by eight agencies. The Pepsi – Me On My Can case
study by JWT was the only one nominated in the Internet Advertising category.

The objective was to use the Internet to refresh the already cluttered cola
category. The challenge was to increase sales against non-aerated beverages.
Also, at that point of time, Thums Up had strengthened its brand positioning.
Another challenge was the influx of multiple youth brands across categories.

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Pepsi’s aim was to reconnect with the youth again, as youth were its key
consumers. The core focus of the strategy was to revamp the look of the Pepsi can
and make it more youthful and attractive. Renamed My Can, it was also retailed at
an affordable price of Rs 15. The thought behind this was to put the consumer
right at the centre of the product.

The insight for this activity was that today’s youth is very technology
savvy and super connected. This generation believes that they will achieve their
dreams, no matter what. They place themselves in the centre of things and that
thought was carried forward in the campaign as well.

An apt example was the Pepsi My Can commercial with actors Shah Rukh
Khan and John Abraham. In the ad, the focus was on the consumer and not the
celebrities.

Various online contests were held to engage consumers. The innovation, Me


On My Can, was done on the Yahoo website, Pepsizone.yahoo.in, where
interested users were asked to direct and act in a video that would show their cool
quotient. The videos would be uploaded and people could vote for their favourite
video. Twenty winners were chosen and their photographs were printed on Pepsi
cans.

On-ground activities were conducted in 120 cities in 15 states. Participant


attention was retained via games, contests and other interactive activities.

JWT claims that these activities got them the desired response from
consumers and Pepsi succeeded in reconnecting with the youth.

The Effies 2008 case study presentations were held on November 20, 2008, at
the Welingkar Institute of Management in Mumbai. The event has been sponsored

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by Yahoo! India, Marico, Vodafone and Brand Equity. The Effies are organised
by Ad Club Mumbai and are based on the effectiveness of ad campaigns.

INDUSTRY PROFILE:

Fast moving consumer goods (FMCG), are products that are sold quickly at
relatively low cost. Though the absolute profit made on FMCG products is relatively
small, they generally sell in large quantities, so the cumulative profit on such products
can be large. Examples of FMCG generally includes a wide range of frequently
purchased consumer products such as toiletries, soap, cosmetics, toothpaste and powders,
detergents etc, It also includes pharmaceuticals, consumer electronics, packaged food
products and drinks, although these are often categorized separately.
Soft drinks industry:

The soft-drink industry comprises companies that manufacture nonalcoholic


beverages and carbonated mineral waters or concentrates and syrups for the manufacture
of carbonated beverages. Naturally occurring bubbling or sparkling mineral waters have
been popular for thousands of years: the ancient Greeks believed that such waters had
medicinal properties and bathed in them regularly; the Romans established resorts around
mineral springs throughout Europe. In the 1500s the village of Spa in Belgium became
famous for its waters, which by the early 1600s were sold, in bottles, as far away as
London, Eng.

Development of the first man-made sparkling or carbonated water is credited to Joseph


Priestley, the British scientist who discovered oxygen. In 1772 he invented a method of
"pushing" carbon dioxide into water by dissolving it under pressure, thus creating fairly
long-lasting bubbles. The technique led to development of the soft-drink industry. By the
beginning of the 19th century, carbonated water was being made commercially in France
and North America; shortly thereafter, flavours (normally fruit concentrates) were added
to enliven the taste. In the 1820s, small carbonated bottling operations were established in
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Canada, producing carbonated drinks in refillable bottles which were merchandised as
medicinal elixirs or tonics. Most soft drinks are still carbonated to give drinks a "tangy
bite" and to stimulate the tongue. Furthermore, because scent is an important part of taste,
the flavours carried as vapours in the bubbles enhance taste.

The principle of "pushing" carbon dioxide is still used, but now the water is first purified
in a process known as "polishing." Cooled carbon dioxide is then injected at pressures of
275-550 kilopascals. Some of the early drinks bottled in Canada were called Birch Beer,
Ginger Beer, Sarsaparilla, Sour Lemon, None-Such Soda Water and Cream Soda. The
first carbonated beverage or "pop" bottles were sealed with corks held tightly in place
with a wire binding. Because they had to be stored neck down so that the cork would not
dry and allow the carbonation to leak away, they were manufactured with rounded
bottoms. By the mid-1800s, soft drinks sold in Canada were packaged in 8-ounce (227.2
ml) round-bottom bottles for about 25 cents a dozen, except ginger beer, which was sold
in draught form from wooden kegs. Wired cork closures were used until about 1884 with
Codd's Patented Globe Stoppers (25 types in all). Such closures were replaced by the
Hutcheson Spring Stopper. The crown cap was introduced around 1905 and improved
versions are still widely used, although they are gradually being replaced, especially on
larger containers, with reclosable screw caps.

Other packaging innovations since the mid-1960s include canned carbonated beverages,
nonreturnable glass bottles and containers made from rigid plastics. However, an effort is
being made, often through provincial legislation, to increase the use of returnable glass
containers.

In the industry's early years the number of carbonated-beverage plants increased steadily,
most serving small regional markets. In 1929 the industry was made up of 345 production
plants and the value of shipments reached $12.3 million. By 1960 the number of plants
had increased to 502 and the value of sales to $172.7 million. Subsequently,
consolidation began, prompted by improved production, packaging and distribution
facilities. By 1973, 337 plants were in production and the value of shipments was $484
million. In 1985, with sales of about $1.8 billion, the industry had 187 plants in
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production: Newfoundland had 3; PEI, 1; Nova Scotia, 7; New Brunswick, 8; Québec,
66; Ontario, 58; Manitoba, 7; Saskatchewan, 10; Alberta, 13; and BC, 14. Production
volume has also increased dramatically: in 1939, soft-drink bottlers produced about 162
million litres of carbonated beverages; by 1967, production passed 758 million litres; in
1986, shipments were estimated at over 2.1 billion litres; and in 1998 that figure rose to
3.5 billion litres.

The industry is regulated by both federal and provincial agencies, 3 of the most important
being CONSUMER AND CORPORATE AFFAIRS (responsible for the Consumer
Packaging and Labelling Act), HEALTH CANADA (which administers the Food and
Drugs Act) and Environment Canada (which focuses on environmental matters). The
industry is represented by the Canadian Soft Drink Association in Toronto and by several
provincial associations.

The introduction of diet carbonated beverages has changed the industry's profile. Several
years ago, in response to increasing consumer diet consciousness, the industry introduced
the first successful sugar-free diet drinks using the artificial sweetener cyclamate. But
questions were raised about the safety of this additive and, based on existing scientific
data, Health Canada banned its use in Canadian commercial FOODS AND
BEVERAGES. This decision, estimated to have cost the industry more than $15 million,
was a setback to diet-drink development. The industry turned to saccharin, but this too
was eventually banned. Now, a new sugar-free additive, aspartame, has been approved
for use in diet soft drinks, and the cyclamate/saccharin situation is not expected to recur
because aspartame consists of amino acids, which occur naturally. Aspartame-sweetened
diet drinks have had a dramatic effect on the Canadian carbonated-beverage industry. Just
before the saccharin ban in 1977, diet drinks accounted for about 10% of the soft-drink
market; following the ban the diet share dropped to about 2%, consisting of beverages
partially sweetened with small amounts of sugar. In 1982, the first full year that
aspartame was used in Canada, diet drinks increased by 15.2% of total soft-drink sales,
while the total soft-drink industry grew 8%. In 1987 total soft-drink sales increased 5.3%
over 1986, while diet soft-drink sales increased by 10.7%. This single development has
encouraged strong growth in the industry.
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Company Profile: PepsiCo
Business Summary:

PepsiCo is one of the largest companies there is that is engaged in the food,
beverage, and snack industries. PepsiCo, Inc. is engaged in the snack food, soft drink,
juice, and fast food franchise businesses. The Company, through its subsidiaries, markets,
sells and distributes various snacks in the United States and internationally, manufactures
concentrates of Pepsi, Mountain Dew and other brands for sale to franchised bottlers in
the United States and international markets and produces, markets, sells and distributes
juices under several Tropicana trademarks in the United States and internationally.
PepsiCo’s domestic snack food business is conducted by Frito-Lay North America, and
its international snack food business is conducted through Frito-Lay International. The
Company's soft drink business operates as the Pepsi-Cola Company and is comprised of
two business units, Pepsi-Cola North America (PCNA) and Pepsi-Cola International
(PCI). In December 2000, the Company announced an agreement under which a
subsidiary of PepsiCo will merge with The Quaker Oats Company, and Quaker will
become a wholly owned subsidiary of PepsiCo. Quaker is a large worldwide marketer of
foods and beverages. It manufactures and markets Gatorade thirst quencher, along with
hot cereals, pancake syrups, grain-based snacks, cornmeal, hominy grits and value-added
rice products. The proposed merger is subject to certain closing conditions, including
approval by shareholders of both companies and regulatory approvals. The transaction is
expected to close in the first half of 2001. PepsiCo also operates several food franchises
including Pizza Hut, KFC, and Taco Bell.

Mission:
Our mission is to be the world's premier consumer Products Company focused on
convenient foods and beverages. We seek to produce financial rewards to investors as we

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provide opportunities for growth and enrichment to our employees, our business partners
and the communities in which we operate. And in everything we do, we strive for
honesty, fairness and integrity.

Vision:
"PepsiCo's responsibility is to continually improve all aspects of the world in
which we operate – environment, social, economic – creating a better tomorrow than
today."

Our vision is put into action through programs and a focus on environmental stewardship,
activities to benefit society, and a commitment to build shareholder value by making
PepsiCo a truly sustainable company.

Performance with Purpose:


At PepsiCo, we're committed to achieving business and financial success while
leaving a positive imprint on society – delivering what we call Performance with
Purpose.

Our approach to superior financial performance is straightforward – drive shareholder


value. By addressing social and environmental issues, we also deliver on our purpose
agenda, which consists of human, environmental, and talent sustainability.

PepsiCo Values & Philosophy:


Our Values & Philosophy are a reflection of the socially and environmentally
responsible company we aspire to be. They are the foundation for every business decision
we make.

Commitment:

We are committed to delivering sustained growth through empowered people


acting responsibly and building trust.
Sustained Growth is fundamental to motivating and measuring our success. Our quest
for sustained growth stimulates innovation, places a value on results, and helps us

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understand whether today's actions will contribute to our future. It is about the growth of
people and company performance. It prioritizes both making a difference and getting
things done.

Empowered People means we have the freedom to act and think in ways that we feel
will get the job done, while adhering to processes that ensure proper governance and
being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold ourselves
both personally and corporately accountable for everything we do. We must earn the
confidence others place in us as individuals and as a company. By acting as good
stewards of the resources entrusted to us, we strengthen that trust by walking the talk and
following through on our commitment to succeeding together.

Guiding Principles:
We uphold our commitment with six guiding principles.

We must always strive to:

• Care for our customers, our consumers and the world we live in. we are driven
by the intense, competitive spirit of the marketplace, but we direct this spirit
toward solutions that benefit both our company and our constituents. Our success
depends on a thorough understanding of our customers, consumers and
communities. To foster this spirit of generosity, we go the extra mile to show we
care.
• Sell only products we can be proud of. The true test of our standards is our own
ability to consume and personally endorse the products we sell. Without
reservation. Our confidence helps ensure the quality of our products, from the
moment we purchase ingredients to the moment it reaches the consumer's hand.
• Speak with truth and candor. We tell the whole story, not just what's
convenient to our individual goals. In addition to being clear, honest and accurate,
we are responsible for ensuring our communications are understood.

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• Balance short term and long term. In every decision, we weigh both short-term
and long-term risks and benefits. Maintaining this balance helps sustain our
growth and ensures our ideas and solutions are relevant both now and in the
future.
• Win with diversity and inclusion. We embrace people with diverse
backgrounds, traits and ways of thinking. Our diversity brings new perspectives
into the workplace and encourages innovation, as well as the ability to identify
new market opportunities.
• Respect others and succeed together. Our mutual success depends on mutual
respect, inside and outside the company. It requires people who are capable of
working together as part of a team or informal collaboration. While our company
is built on individual excellence, we also recognize the importance and value of
teamwork in turning our goals into accomplishments

The PepsiCo Family

Meet the three major divisions of the PepsiCo family:

1. PepsiCo Americas Beverages.


2. PepsiCo Americas Foods.
3. PepsiCo International.

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PRODUCT PROFILE:

PepsiCo is home to hundreds of brands around the globe. Listed here are some of
our most recognized.

Pepsi Mountain Dew Mug Root Beer

• Pepsi • Mountain Dew • Mug Root Beer


• Caffeine Free Pepsi • Diet Mountain Dew • Diet Mug Root Beer
• Diet Pepsi • Caffeine Free • Mug Cream Soda
• Caffeine Free Diet Mountain Dew • Diet Mug Cream Soda
Pepsi • Mountain Dew Code
No Fear
• Diet Pepsi Max Red
• Jazz Diet Pepsi • Diet Mountain Dew
• No Fear
• Diet Pepsi Lime Code Red
• No Fear Motherload
• Diet Pepsi Vanilla • Mountain Dew
• Sugar Free No Fear
• Pepsi Wild Cherry LiveWire
Motherload
• Diet Pepsi Wild • Mountain Dew
Cherry Voltage
• Pepsi ONE
Dole (License)

AMP Energy • Dole juices and juice


Sierra Mist drinks
• AMP Energy
• Dole Plus fortified
• Sierra Mist • AMP Energy Sugar
juices
• Diet Sierra Mist Free
• Sierra Mist • AMP Energy
Cranberry Splash Overdrive
Outside North America
• Sierra Mist Free • AMP Energy Relaunch

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Cranberry Splash • AMP Energy Traction
• Mirinda
• AMP Energy Elevate
Tropicana • 7UP (International)
• AMP Energy Shot
• Pepsi Limón
• Tropicana lemonade
SoBe • Kas
and punches
• Teem
• Tropicana Light • SoBe juice drinks,
• Pepsi Max
lemonade and punches dairy, and teas
• Pepsi Light
• Tropicana Twister • SoBe Lean diet juice
• Manzanita Sol
sodas drinks, dairy, and teas
• Paso de los Toros
• SoBe Life Water
• Fruko
Ocean Spray (License)
• SoBe Adrenaline Rush
• Evervess
• Ocean Spray juices • Yedigun
Aquafina
• Ocean Spray juice • Shani
drinks • Aquafina • Fiesta
• Aquafina FlavorSplash • D&G (License)
More
• Aquafina Sparkling • Mandarin (License)
• Radical Fruit
• Ethos Water
Starbucks (Partnership)
(License)
Lipton (Partnership)
• Manzanita Sol • Frappuccino ready-to-
• Slice drink coffee • Lipton Brisk
• FruitWorks juice • Starbucks Doubleshot • Lipton Iced Tea
drinks • Starbucks
• Lipton Pure Leaf
• Mirinda
PROGRESS:

• Accelerated the growth of our portfolio of healthful products


• PepsiCo named to the Dow Jones Index for the third straight year
• Expanded our portfolio of healthful products through innovation
• Launched the food industry’s first Carbon Reduction Label with the Carbon Trust
on Walkers Crisps
27
• Improved water intensity ratio across all of our operations.
• Committed more than $16 million to organizations working to bring safe water to
developing countries
• Incorporated consideration of environmental sustainability issues and
opportunities as part of every capital expenditure evaluation for projects greater
• Signed CEO Water Mandate
• Conserved nearly 5 billion liters of water and nearly 500 million kilowatt hours of
energy worldwide in 2007 as compared to 2006
• Set corporation-wide goals to reduce water consumption by 20% per unit of
production by the year 2015
• Authored with industry the "Global Commitment to Action on the Global Strategy
on Diet, Physical Activity and Health", a commitment addressed to the World
Health Organization
• Launched our global sustainable packaging policy
• Improved significantly our water, fuels, and electricity efficiency
• Reduced PET bottles, paperboard, and corrugated materials by more than 20
million pounds
• Introduced our Supplier Code of Conduct
• Joined Supplier Ethical Data Exchange (SedEx)
• Increased spending on women and minority owned businesses
• Translated our Human Rights Workplace Policy into 20 languages
• Instituted global guidelines for beverages limiting advertising and marketing to
children under12
• Incorporated consideration of environmental sustainability issues and
opportunities as part of every capital expenditure evaluation for projects greater than
$5 million
• Saved nearly 1.5 billion gallons of water worldwide in 2007 compared to 2006
• Continued reuse of water from processing, working with local communities to
provide access to clean water, and supporting farmers to deliver "more crop per
drop"

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• Offset the total purchased electricity used by all PepsiCo US-based facilities by
purchasing renewable energy credits

Honored by the U.S. Environmental Protection Agency (EPA) with 2007 and 2008
Energy Star Partner of the Year awards for energy conservation

LEADERSHIP:

Massimo F. d'Amore John C. Compton Michael D. White


Indra K. Nooyi CEO PepsiCo Americas CEO PepsiCo CEO PepsiCo Intl.
Chairman and Beverages Americas Foods & Vice Chairman,
CEO PepsiCo

CHAPTER III
29
DATA ANALYSIS AND
S.no Parameters Percentage

1 Below 15 yrs 12
2 15-25 yrs 46
3 25-35 yrs 34
4 Above 35 yrs 8

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

TABLE: 3.1 Age of the consumer of purchasing the Pepsi slim can

30
CHART.NO: 3.1.1 Age of the consumer of purchasing the Pepsi slim can

Age of consumers

8% 12%

below 15 yrs
15-25 yrs
34% 25-35 yrs
above 35 yrs
46%

INFERENCE: From the above table its been interpreted that 46% of the
respondents are belongs to the age group 15-25 yrs and 34% respondents are
belongs to the age group 25-35 yrs and 9% respondents are belongs to the age group of
below 15 yrs and 8% respondents are belongs to the age group above 35 yrs.

Table 3.2: Average sales of soft drinks in the retail outlets


Parameter No of Respondents Percentage

5-10 c/s 10 10
10-20 c/s 14 14
20-30 c/s 24 24
31
Above 30 c/s 52 52 100

50 East

0 West

1st North

Qtr

CHART.NO: 3.2.1 Average sales of soft drinks in the retail outlets

Average soft drinks sales of an retail


outlet

60
50
40 5-10 c/s
sales % 30 10-20 c/s
20 20-30 c/s
10
Above 30 c/s
0
No. of cases

Inference:
From the table its been interpreted that 52% of the retail store had average sales
above 30 c/s per week and 24% of the retail store with 20-30 c/s per week and 14% and
10% of the retail store with 10-20 c/s and less than 10 c/s per week respectively.

Table 3.3: Sales of Pepsi slim can products per week


Parameter No of Respondents Percentage

1-20 42 42
20-40 32 32
40-60 18 18
Above 60 8 8

32
CHART NO: 3.3.1 Sales of Pepsi can products per week

Sa les o f Pe ps i s lim c a n

pro duc ts pe r wee k

50 20-40
s a le s

40-60
Inference:
0 No . of

Pie c es

From the above table its been interpreted that 42% of outlet had 1-20 products per
Above 60
week and 32% of outlet had 20-40 products per week and 18% of outlet had 40-60
products per week and 8% of outlet had above 60 products sales per week.

Table 3.4: Consumer priority of the pepsi slim can

S.no Products Percentage


1 Pepsi my can 54
2 Mirinda 20
3 Mountain dew 18
4 7 up 8

33
CHART NO: 3.4.1 Consumer priority of the pepsi slim can

Consumer priority of slim can

60
50
Respodents %

Pepsi my can
40
Mirinda
30
Mountain dew
20
7up
10
0
1
Products

INFERENCE:
From the above table its been interpreted that 54% of the respondents priorities
the Pepsi My can and 20% of the respondents priorities the Mirinda and 18% of the
respondents priorities the Mountain Dew and 7% of the respondents priorities the 7up.

Table 3.5: Consumer preference in case of non-availability of slim cans products


Parameter No of Respondents Percentage

34
Pepsi diet 18 18
Coke can 58 58
Tetra pack 10 10
Others 14 14

CHART.NO: 3.5.1 Consumer preference in case of non-availability of slim cans

Consumer preference incase of non-


availability of slim can

60
50
40 Pepsi diet
Respodent
30 Coke can
s%
20
Tetra Pack
10
0 Others
Products

INFERENCE:
From the above table it’s been interpreted that 58% prefer coke can incase of non-
availability of slim can and 18% prefer Pepsi diet incase of non-availability of slim can
and 10% prefer Tetra pack incase of non-availability of slim can and 14% prefer other
products incase of non-availability of slim can.
Table 3.6: Customer opinion about the price of the Pepsi slim can
S.no Parameters Percentage

1 Very high 32
2 High 40
3 Moderate 18
4 Low 8
5 Very low 2

CHART.NO: 3.6.1 Customer opinion about the price of the Pepsi slim can

35
Price of the slim can

40
30
Very high
No. of
20 High
respodents
10 Moderate
Low
0
Very low

Price level

INFERENCE:
From the above its been interpreted that 40% of the respondents feel that price
level of the Pepsi slim can products are High, 32% of the respondents feel that price level
of the Pepsi slim can products are Very High, 18% of the respondents feel that price level
of the Pepsi slim can products are Moderate, 8% & 2%of the respondents feel that price
level of the Pepsi slim can products are Low and Very low respectively.

Table 3.7: Customer satisfaction level about the distribution of the products
S.no Parameters Percentage

1 Highly satisfied 16
2 Satisfied 20
3 Satisfied to some extend 26
4 Less satisfied 28
5 Unsatisfied 10

36
CHART.NO: 3.7.1 Customer satisfaction level about the distribution of the products

Distribution of slim can

30 Highly satisfied
Respodents %

25
20 satisfied
15
10 satisfied to
5 some extent
0 less satisfied
1
unsatisfied
satisfaction level

INFERENCE:
From the above table its been interpreted that 16% of the respondents are Highly
satisfied with the distribution of the products, 20% of the respondents are satisfied with
the distribution of the products, 26% of the respondents are Satisfied to some extent with
the distribution of the products, 28% of the respondents are Less satisfied with the
distribution of the products, 10% of the respondents are Unsatisfied with the distribution
of the products.

Table 3.8: Frequency of purchasing the slim can products


Parameter No of Respondents Percentage

1-5 times 41 41
5-10 times 25 25
37
Rarely 34 34

CHART.NO 3.8.1: Frequency of purchasing the slim can products

Consumer frequency of
purchasing the slim can

50
40
Respode 30 1-5 times
nts % 20 5-10 times
10 Rarely
0
No. of products

INFERENCE :
From the above table it’s been interpreted that 41% of respondents purchase the products
1-5 times per week and 25% of respondents purchase the products times 5-10 times per
week and 34% of respondents purchase the products rarely

Table 3.9: Consumer awareness of Pepsi slim can through the advertising medium
S.no Advertising medium Percentage

1 Hoarding & banners 32


2 Newspapers & magazine 25
3 Tv/radio 43

38
CHART.NO: 3.9.1 Consumer awareness of Pepsi slim can through the advertising
medium

Advertising medium

50
40
Hoardings &
No.of 30 banners
respodent% 20 Newspapers &
10 magazine
0 Tv/radio

Medium

INFERENCE:
From the above table it’s been interpreted that 32% of the consumers came to
knew about the Pepsi slim can products through Hoarding & Banners and 25% through
Newspapers & Magazine and 43% through TV/radio.

Table 3.10: Consumer opinion about the reach of the Advertisement


S.no Parameters Percentage
1 Yes 48
2 No 52

CHART.NO: 3.10.1 Consumer opinion about the reach of the Advertisement

39
INFERENCE:

From the above table its been interpreted that Advertisement had reached the 52%
of the consumer and Advertisement had not reached the 48% of the consumer.

Table 3.11: Consumer opinion about the advertisement effect on purchase


S.no Parameters Percentage
1 Yes 32
2 No 68

CHART.NO:3.11.1 Consumer opinion about the advertisement effect on purchase

40
Advertisement effect on purchase

32%

Yes
No

68%

INFERENCE:
From the above table its been interpreted that 32% respondents purchase through
advertisment and 68% respondents purchase not through the advertisment.

Table 3.12: Consumer preception about the purchase of slim can


S.no Consumer perception Percentage
1 Packing style 32
2 Cost 12
3 Taste 20
4 Passion 36

CHART.NO: 3.12.1 Consumer preception about the purchase of slim can

41
Consumer buying decision

40
35
30
No. of 25 Packing style
respodent 20 Cost
% 15
Taste
10
5 Passion
0
Factors

INFERENCE:
From the table its been interpreted that 32% of the consumer buying decision
based on packing style and 20% based on taste and 36% based on Passion and 12% based
on cost.

Table 3.13: Consumer opinion about the taking of slim can on occasions
S.no Buying motivation Percentage
1 Feeling thirsty 56
2 Parties/celebrations 16
3 Just like that 20
4 Others 8

CHART.NO: 3.13.1 Consumer opinion about the taking of slim can on occasions

42
Buying motivation

60 Feeling
50 thirsty
No.of 40 Parties &
respodent 30 celebration
% 20
Just like that
10
0
occassions others

INFERENCE:

From the table its been interpreted that 56% consumer takes Pepsi slim can on the
occasion of “Feeling thirsty” and 16% on the “Parties/celebrations” and 20% on the “Just
like that”.

Table 3.14: Consumer prefferd channel for the purchase of slim can
S.no Purchasing place Percentage
1 Retail store/grocery store 28
2 Super market/hyper market 24
3 Cine plex 16
4 Restaurants 32
10 0

50 Eas t

0 We s t

1s t North

Qtr

CHART.NO: 3.14.1 Consumer prefferd channel for the purchase of slim can

43
Purchasing place

40
Respodents %
32
28
24
20 16

0
Retail Super Cineplex Restaur
Series1 28 24 16 32
Place of purchase

INFERENCE:
From the table its been interpreted that 28% of the consumer purchase the slim
can products on “Retail store/grocery store” and 24% of the consumer purchase the
products on “Super market/Hyper market” and 16% of the consumer purchase the
products on “Cineplex” and 32% of the consumer purchase the products on “Restaurant”.

CHI-SQUARE ANALYSIS

Need for the test : To find the relationship between Frequency


of purchasing the slim can and the advertising medium.
Null Hypothesis (H0) : There is no significant different between Frequency
of purchasing the slim can and the advertising medium.
Alternative Hypothesis (H1) : There is a significant different between Frequency
of purchasing the slim can and the advertising medium.

44
Table No. 3.15
RELATIONSHIP BETWEEN THE FREQUECNY OF THE
PURCHASING THE SLIM CAN AND THE ADVERTISING
MEDIUM.

Sl. Price of slim can 1-5 5-10 Rarely


Total
No Place of purchase tmies times

1 Tv/radio 22 9 12 43
2 Hoardings & 9 10 13 32
banners
3 Newspapers & 10 6 9 25
Magazine
Total 41 25 34 100

CHAPTER IV

FINDINGS AND SUGGESTIONS


45
FINDINGS

 From the table we observed that 45% of consumer age group was 15-25 years and
34% of the consumer age group was 25-35 years.

 From the table we observed that 52% of the retail store had average sales above
30 c/s per week and 24% of the retail store with 20-30 c/s per week and 14% and
10% of the retail store with 10-20 c/s and less than 10 c/s per week respectively.

 From the table we observed that 42% of outlet had 1-20 products per week and
32% of outlet had 20-40 products per week and 18% of outlet had 40-60 products
per week and 8% of outlet had above 60 products sales per week.

 From the table we observed that 55% of the customer perfer “Pepsi my can”
rather than the mirinda,mountian dew and 7up.

 From the table we observed that 40% of the customer feel the price the slim was
“high” and 39% of the customer feel the price was “Very high’.

46
 From the table we observed that 26% of the customer are “satisifed to some
extent” and 28% of the “customer are less satisified” about the distribution of the
pepsi slim can.

 From the table we observed that that 32% of the consumers came to knew about
the Pepsi slim can products through Hoarding & Banners and 25% through
Newspapers & Magazine and 43% through TV/radio.

 From the table we observed that 41% of respondents purchase the products 1-5
times per week and 25% of respondents purchase the products times 5-10 times
per week and 34% of respondents purchase the products rarely.

 Frome the table we observed that consumer buying decision based on 36% for
“Passion” and 32% for the “Packing style”.

 From the table we observed that 57% consumption of slim can on the occasion of
“Feeling thristy” and 20% on “Just like that” and 16% on “Parties and
celebration”.

 From the table we observed that Purchasing place for the slim can , 32% on
restaurant,29% on retail and grocery store and 23% on super market and hyper
market.

47
SUGGESTIONS

 The New pricing strategy should be introduced for the Pepsi slim can products in
order penetrate the new market.

 The Distribution of slim can to the retail outlets should be made effectively and
more offers should give to customers.

 The awareness about the Pepsi slim can should be increase by giving more
advertisement in TVs/radio and the other promotional activities has to be made.

 The Place of purchase of slim can is very high in super market and Restaurant, in
order increase the market share these places has to concentrate more for the sale.

48
CHAPTER V
CONCLUSION

49
CONCLUSION

• Through the research conducted in the Chennai, the researcher had achieved the
objective of the research.
• As this result may not be suitable to all the regions of the country because of the
culture , standard of living and volume of the market.
• There is no such a slim can products with the competitors of Pepsico.
• The research concludes that Pepsico have great opportunity to penetrate the
products in huge volume.

50
51
BIBLIOGRAPHY

BIBILIOGRAPHY
1. Philip Kotler, “Marketing Management”12th Edition, 2003, Prentice hall
of India (P) Ltd., New Delhi.
2. R.S.N. Pillai & Bagavathi, “Statistical” 1st Edition, 1999. S. Chand &
Company Ltd., New Delhi.
3. C.R. Kothari, “Research Methodology”
4. www.pepsiindia.co.in
5. www.pepsico.com

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